9th Oct 2014 09:52
LONDON (Alliance News) - Henderson Eurotrust PLC Thursday reported a positive net asset value return and outperformance of its benchmark.
In a statement for the year ended July 31, the trust, which invests predominantly in large and medium-sized companies perceived to be undervalued, said its NAV total return rose by 5.4%, while the FTSE World Europe (ex UK) Index rose by 4.1% over the same period in sterling terms.
The trust said it will pay a final dividend of 12.50 pence, taking the distribution for the year to 17.50p, a 2.9% increase on last year.
"In the year under review no shares were bought back by the company. Although earnings growth has been less than was originally anticipated, dividend growth from the portfolio has been adequate to enable us to make a small increase in the final dividend," Nicola Ralston, who chairs the trust, said in a statement.
Ralston said the trust's portfolio became slightly more concentrated over the past year, with reduced turnover, "consistent" with the trust's underlying investment thesis.
"Despite a list of macro-economic concerns we continue to be optimistic about the prospects for the portfolio. Although no investment approach can perform in every environment, we believe that the company remains an attractive investment, both relative to the index and in absolute terms, over the economic cycle," Ralston said.
The trust's shares were Thursday quoted up 0.5% at 779.12p.
By Samuel Agini; [email protected]; @samuelagini
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